Share
Explore BrainMass

# Accounting

### Pension Accounting Smith Construction Johnson Corporation Bargain Industries

Question 1: Smith Construction has a noncontributory, defined benefit pension plan. At December 31, 2011, Smith received the following information: (see data attached) The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2011. At the end of 2011,

### Debt and financial risk

Tower Interiors has made the forecast of sales shown in the following table. Also given is the probability of each level of sales. Sales Probability \$200,000 .20 300,000 .60 400,000 .20 The firm has fixed operating costs of \$75,000 and variable operating costs equal to 70% o

### Discuss the positives and negatives of capitalizing leases and the related leased assets

One alleged advantage of leasing voiced in the past is that it kept liabilities off the balancesheet, thus making it possible for a firm to obtain more leverage than it otherwise could have. This raised the question of whether or not both the lease obligation and the asset involved should be capitalized and shown on the balance

### Accounting: Tiny Tim's Bookcases variable costing and full costing

Problem 2: Tiny Tim's Bookcases- Variable Costing vs Full Costing The information for Tiny Tim's Bookcases for the first two years of its operations is as follows: Selling price per unit \$600 Variable production costs per unit produced \$210 Variabl

### Company strategies - success or failure

Please help with the following problem. Include references in the response. Research the Internet for a company that has either: Been very successful from a specific strategy. Experienced failure or devastating results from a specific strategic perspective. Identify the company and the specific strategies that hav

### Qualitative and quantitative research in business situation

1- Discuss and evaluate the use of qualitative research in business situations. 2- Discuss and evaluate the use of quantitative research in business situations.

### Carter Components is computing the components of its pension expense for the current year ended December 31. Carter has calculated that its service cost is \$60,000 and has computed interest cost as \$42,000. The average remaining service life of its employees is 8 years. the return on \$500,000 in plan assets was anticipated to be 8 percent but was actually 8.5 percent. The pension benefit obligation at the beginning of the year was \$560,000 and, at the end of the year, \$602,000. The company has an unrecognized gain of \$60,000. To what extent will the unrecognized gain reduce current-year pension expense? A. \$25 B. 500 C. 750 D. 1,250

1. Carter Components is computing the components of its pension expense for the current year ended December 31. Carter has calculated that its service cost is \$60,000 and has computed interest cost as \$42,000. The average remaining service life of its employees is 8 years. the return on \$500,000 in plan assets was anticipated to

### Can company profits be distributed directly to owners thereby transferring the tax burden? Why or why not?

Can company profits be distributed directly to owners thereby transferring the tax burden? Why or why not?

### Discuss methods and strategies to increase the service quality in the application of forensic accounting investigation in the fight against fraud.

Discuss methods and strategies to increase the service quality in the application of forensic accounting investigation in the fight against fraud.

### P 8-2: Did Rasul correctly account for each purchases transactions

The following inventory transactions took place near December 31, 2011, the end of the Raul Company's fiscal year-end: 1. On December 27, 2011, merchandise costing \$2,000 was shipped to the Myers Company on consignment. The shipment arrived at Myer's location on December 29, but none of the merchandise was sold by the end of

### Conard Corporation horizontal and vertical analysis

The comparative condensed balance sheets of Conard Corporation are presented below. CONARD CORPORATION Comparative Condensed Balance Sheets December 31 2012 2011 Assets Current assets \$ 74,380 \$ 80,020 Property, plant, and equipment (net) 98,620 90,090 Intangibles

### Allocation Bases and Overhead Rates

1. What is a predetermined overhead rate and how is it computed? 2. What do you feel is the best allocation base to use for the denominator in the predetermined overhead rate calculation and why? 3. What factors would you consider in choosing the allocation base?

### Portable Enterprises Limited Resources

Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue data pertaining to each product are shown below: Double Wide Single Wide Selling price \$70,000

### Company C has a corporate location in Chicago, IL and has decided to expand its operations to Omaha, NE in the following six months. CFO, Joe Smith, has identified the cash that is necessary to start such an expansion. Joe has itemized all of the transactions and documented the transactions against the potential growth that the expansion would precede. He then did an analysis of these transactions and the costs that were incurred and structured a trial balance. Once the expansion was underway, Joe began to post the actual entries in his ledger until he reached the end of the year. Discuss what stage of the accounting cycle Joe Smith and Company C are in and identify the complete stages. What measures should Joe take to complete the accounting cycle?

Company C has a corporate location in Chicago, IL and has decided to expand its operations to Omaha, NE in the following six months. CFO, Joe Smith, has identified the cash that is necessary to start such an expansion. Joe has itemized all of the transactions and documented the transactions against the potential growth that the

### Changes to Net Income for Linden Corporation for year ended December 31, 2010

Linden Corporation is preparing its December 31, 2010, financial statements. Two events that occurred between December 31, 2010, and March 10, 2011, when the statements were issued, are described below. A liability, estimated at \$160,000 at December 31, 2010, was settled on February 26, 2011, at \$170,000. A flood loss of \$8

### Direct-material price and quantity variances

Provide steps to complete the problem: During April, Dryden Company's material purchased amounted to 6,500 pounds at a price of \$7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows. Direct Labor: \$118,035 (\$18.30 per hour) Direct material: \$31,820 (\$7.40 per hour) The standards for

### Accounting explanation - Fourth-quarter losses of automakers

The press report carried the following news item: General Motors, Ford, and Chrysler are expected to post losses on fourth-quarter operations despite sales gains. Automakers' revenues are based on factory output rather than retail sales by dealers, and last quarter's sales increases were from the bulging inventories at the end o

### Taxation on house constructed and sold by Sylvia, the dentist

Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from Saudia Arabia, where he is serving in the military. She began construction on March 23, 2005, and finished the house on July 10, 2006, at a total cost of \$70,000. Her

### How do you define materiality as a CPA?

In assessing errors, a CPA must consider its materiality, since immaterial errors do not necessarily require correction. How do you define materiality as a CPA in evaluation of errors? What are some considerations?

### I need help with random questions picked by all of the members of my peer group for a final test

At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total \$733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) \$725,680

### The Medical Center - Predetermined Factory overhead rate

The Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On November 1 of

### Bullock Furniture: Calculate balances for materials ledger

Bullock Furniture Company manufactures furniture. Bullock uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric \$18,400 Polyester filling 5,500 Lumber 41,200 Glue 1,800 The materials purchased during June are summarized from the receiving reports as follows: Fabric \$

### Cost Accounting Budgeted Data

Attached #1 The following budgeted and actual data are for the operations of the All-Fixed Company. All-fixed uses budgeted production as the denominator level and writes off any production volume variance to cost of goods sold. 2008 2009 Sales 10,000 tons

### Compare Nordstrom's liquidity with (1) that of J.C. Penney Company

see attached Nordstrom Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2012, are as follows. NORDSTROM, INC. Balance Sheet (partial) (in millions) End-of-Year Beginning-of-Year Cash and cash equivalents \$ 482 \$ 369 Receivables (net)

### Esquire Company adjusting entry impact

On June 30, 2011, the Esquire Company sold some merchandise to a customer for \$30,000. In payment, The 6% rate is appropriate in this situation. 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of goods sold), the December 31, 2011 interest accrual, and the March

### Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debit expense is established as a percentage of credit sales. For 2011, net credit sales totaled \$4,500,000, and the estimated bad debt percentage s 1.5%. The allowance for uncollectible accounts had a credit balance of \$42,000 at the beginning of 2011 and \$40,000, after adjusting entries, at the end of 2011; 1. What is the bad debt expense? 2. Determine the amount of accounts receivable written of during 2011. 3. If the company uses the direct write off method, what would the bad debt expense be for 2011?

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debit expense is established as a percentage of credit sales. For 2011, net credit sales totaled \$4,500,000, and the estimated bad debt percentage s 1.5%. The allowance for uncollectible accounts had a credit balance of \$42,000 at

### An item is relevant if it is different between or among decision alternatives.

"An item is relevant if it is different between or among decision alternatives. That item is not relevant if it is the same between or among decision alternatives." We have more information available today than ever before ... Yet that is not always to our benefit, for much of the information may have questionable accurac

### Preparing the Net Cash Provided by Operating Activities Section

See attached. The current sections of Leach Inc.'s balance sheets at December 31, 2010 and 2011, are presented here. Leach's net income for 2011 was \$152,760. Depreciation expense was \$24,000. 2011 2010 Current assets Cash \$105,170 \$99,170 Accounts receivable 110,300 88,520 Inventory 157,

### Calculate variances for Healing Touch and Turow Trailers

1. Healing Touch manufactures massage chairs with the following standard cost structure: Standard Cost Sheet: Massage Chair Metal tubing ¨ 6 meters @ \$3 \$ 18.00 Leather 2 square meters @ \$7 \$ 14.00 Padding 3 kilograms @ \$4 \$ 12.00 Direct labor 4 hours @ \$15 \$ 60.00 Total standard cost \$104.00 During th

### Example of circumstances that changes ratios

Consider each of the following situations independently of each other. 1.Current ratio increases from one period to the next. 2.Accounts receivable turnover increases from one period to the next. 3.Accounts payable turnover increases from one period to the next. Question 1 Provide one example of when the underlyi